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CHARLESTON -- Gov. Jim Justice is a vocal opponent of Amendment 2 that would let lawmakers reduce or eliminate six categories of tangible personal property taxes, but he did say he was open to a more narrowly tailored amendment that would allow for tax cuts and protect counties.
Speaking Thursday during a virtual briefing with reporters from the Capitol, Justice encouraged voters to reject Amendment 2. If that happens, Justice said he wants to meet with lawmakers and work on a new constitutional amendment in the near future.
"We should pause," Justice said. "We should absolutely throw Amendment 2 out. And if we want to work on another amendment going forward that gives us the ability to change the deckchairs around in the Legislature and make common sense to everybody, then do it. That's great and I would be a real participant in that."
Justice has spent the last nearly three weeks traveling around the state to urge voters to reject Amendment 2. He traveled to Logan Thursday afternoon to make his case.
Amendment 2 would amend the state Constitution to allow lawmakers to reduce or eliminate six categories of tangible personal property taxes: machinery and equipment, furniture and fixtures, leasehold investments, inventory and vehicles. The amendment has support from Republican lawmakers and the state businesses and manufacturing community that believe it will allow leaders to discuss the best ways of reducing taxes.
The amendment is opposed by Justice, multiple county government leaders and state organizations representing county governments and county school systems. The opponents of Amendment 2 believe it will take away constitutional protections for a secure tax revenue stream that funds county services and public schools.
Adding to the concern of opponents of Amendment 2 is a draft bill by the Senate Republican leadership that would both cut personal income tax rates by 10 percent across all six brackets as well as eliminate the six categories of tangible personal property taxes, returning more than $800 million to taxpayers.
The draft bill, which would be introduced in the next legislative session if Amendment 2 is approved by voters, would fund counties and school systems directly from the general revenue budget beginning in July when the next fiscal year begins. Using a formula, counties would be funded at their assessed tangible personal property values plus a minimum of $1 million additional.
"A lot of real live people stand a risk of being hurt. A lot of people," Justice said. "Why are we doing this? We have every business in the land almost wanting to come here right now. We're absolutely covered up with requests, and we want it even more I grant you. But how do we know that doing this will really help that more?"
Amendment 2 opponents don't trust the math and raise concerns about tax revenue downturns in the future that could hurt counties. Justice instead supports a 10 percent personal income tax cut with the goal of phasing out the personal income tax in the future. Personal income tax revenue accounts for nearly half of the state's general revenue tax collection, bringing in $2.5 billion in the previous fiscal year.
"We do know unequivocally that if we can get on a pathway to reduce the personal income tax, it would help out citizens off the chart," Justice said. "Every single place that has happened, growth has come like crazy."